Unit-I Consumer’s need and motives, Consumer as a perceiver and learner,

Influence of personality and attitude on buying behaviour, Cultural, Social

and economic factors affecting consumer behaviour, Consumer attitude
Formation and change.

Consumer’s need and motives

Consumer behavior refers to the study of how individuals, groups, or organizations make
decisions to select, purchase, use, or dispose of products, services, ideas, or experiences to satisfy
their needs and wants. It is a complex field that combines psychology, sociology, economics, and
marketing.
Theories in consumer behavior aim to explain and predict why consumers make specific choices.

Consumer Needs:
Definition: Consumer needs refer to the basic necessities or requirements that individuals seek to
fulfill through the products or services they purchase. These needs can be both functional (e.g.,
food, shelter) and emotional (e.g., love, belonging).

Maslow’s Hierarchy of Needs: This theory suggests that people have a hierarchy of needs, with
physiological needs at the base (e.g., food, shelter) and self-actualization needs at the top (e.g.,
personal growth). Consumers prioritize fulfilling lower-level needs before higher-level ones.

Consumer needs are the fundamental requirements and desires that individuals have, which drive
their purchasing and consumption behaviours. Understanding these needs is crucial for
businesses and marketers to develop products and services that cater to their target audience
effectively. Consumer needs can be categorized into several key areas:

Basic Physiological Needs:

These are the most fundamental needs, including food, water, clothing, and shelter. People
require these to survive and maintain their well-being. Businesses in these industries must focus
on providing products that meet these basic human requirements.

Safety and Security Needs:

After fulfilling physiological needs, individuals seek safety and security. This includes personal
safety, financial security, health, and protection from potential harm. Products such as insurance,
home security systems, and health services address these needs.

Social Needs:
Humans are inherently social beings. They require interaction, companionship, and a sense of
belonging. Products and services related to social needs include social media platforms, dating
apps, and community organizations.

Esteem Needs:
Esteem needs involve the desire for self-respect and the respect of others. People seek
recognition, status, and accomplishment. Luxury goods, fashion items, and personal
development services often address these needs.

Self-Actualization Needs:
At the highest level of the hierarchy, individuals strive for personal growth and self-fulfilment.
This includes pursuing hobbies, creativity, and realizing one’s full potential. Products and
services in education, art, and self-help industries target these needs.

Understanding consumer needs often involves conducting market research and analyzing
consumer behavior to identify their preferences and pain points. Businesses can then tailor their
offerings to meet these needs more effectively. It’s essential for businesses to communicate how
their products or services fulfill these needs through marketing and branding strategies. Meeting
consumer needs is a key factor in building customer loyalty and achieving business success.

Consumer Motives:
Definition: Consumer motives are the internal or external factors that drive individuals to take
specific actions or make particular choices. These motives can be influenced by personal, social,
or cultural factors.

Consumer Motives: Understanding Buying Behavior

Consumer motives refer to the underlying reasons and driving forces that influence individuals’
decision-making processes when it comes to purchasing products or services. These motives are
integral to understanding consumer behavior and can be categorized into several broad
categories:

Basic Needs: These are the fundamental motives that drive consumers to satisfy their
physiological and safety requirements. For example, people buy food to fulfill hunger, and they
buy insurance for financial security.

Functional Motives: Consumers often buy products or services because they serve a specific
purpose or function. This can include purchasing a car for transportation, a smartphone for
communication, or a winter coat for warmth.

Emotional Motives: Emotions play a significant role in consumer decisions. People might buy a
luxury watch or a designer handbag to feel a sense of status or prestige. On the other hand, they
may purchase comfort food to experience emotional comfort.

Social Motives: Social motives drive consumers to make purchases to fit in or stand out within
their social circles. For example, someone might buy trendy clothing to be fashionable and gain
social approval, while another may purchase unique, niche products to express their
individuality.
Cultural and Psychological Motives: These motives are influenced by a person’s cultural
background and psychological factors. Cultural motives include traditions, customs, and societal
norms that influence consumer choices. Psychological motives can encompass factors like
perception, learning, and attitude that shape how a consumer perceives and responds to
marketing stimuli.

Self-expression and Identity: Some consumers make purchases as a form of self-expression.

For example, buying artwork or tattoos can be a way to express one’s individuality and personal
identity.

Problem-Solving Motives: Consumers often buy products or services to solve specific problems
or challenges they face. For example, they may purchase a software solution to improve their
work efficiency or seek medical advice and medication to address a health issue.

Environmental and Ethical Motives: In recent years, consumers have become more conscious
of environmental and ethical concerns. They may choose eco-friendly products or support
companies with responsible practices to align with their values and beliefs.

Novelty and Curiosity: Sometimes, consumers are motivated by the desire for novelty and
curiosity. They may buy a new gadget or try a new restaurant simply because they are intrigued
by the unfamiliar.

Price and Value: Price is a critical motive for many consumers. Some prioritize finding the best
deals, discounts, and value for their money when making purchasing decisions.

Understanding these consumer motives is essential for businesses and marketers. They use this
knowledge to create effective marketing strategies, tailor their products or services to meet
consumer needs, and appeal to the various motivations that drive purchasing behavior. By
recognizing and addressing these motives, companies can better connect with their target
audience and increase the likelihood of successful sales and customer satisfaction.

Consumer as a perceiver
Consumer perception is a fundamental concept in marketing and psychology that examines how
individuals interpret and make sense of the world around them, particularly in the context of their
interactions with products, brands, and services. Here, we’ll delve into the concept of the
consumer as a perceiver in detail:

Sensory Perception: Consumers are constantly bombarded with sensory information through
their five senses: sight, hearing, taste, touch, and smell. The way consumers perceive products
and services often begins with the sensory inputs they receive. For example, the colour, shape,
and texture of a product, the sound of a jingle in an advertisement, or the aroma of a freshly
baked bread in a bakery.
Selective Attention: Consumers cannot pay equal attention to every stimulus in their
environment due to limited cognitive resources. They use selective attention to focus on specific
aspects of a product or advertisement while ignoring others. This is influenced by their interests,
needs, and goals. For example, someone interested in purchasing a smartphone might pay more
attention to technical specifications in an ad.

Perceptual Filters: Consumer perception is influenced by various perceptual filters, including

cultural, social, and personal factors. Cultural norms, social influences, and individual beliefs can
shape how a consumer perceives a product. For instance, cultural norms may dictate color
symbolism, affecting a consumer’s perception of a product’s packaging.

Perceptual Organization: Consumers have the ability to organize sensory information into
meaningful patterns. This is often influenced by Gestalt principles of perceptual organization,
such as proximity, similarity, and closure. A well-designed product or ad leverages these
principles to create a coherent and appealing message.

Interpretation: Once consumers have organized sensory inputs, they interpret them based on
their past experiences, knowledge, and expectations. Interpretation plays a significant role in the
perception process. For instance, if a consumer has had positive experiences with a brand in the
past, they may interpret a new product from that brand more favourably.

Perceptual Thresholds: Consumers have perceptual thresholds, which are the minimum levels
of sensory input required for them to notice a stimulus. These thresholds vary from person to
person. Marketers need to be aware of these thresholds to ensure their marketing efforts are
noticed by the target audience.

Perceived Quality and Value: The way a consumer perceives a product’s quality and value is
crucial in the decision-making process. These perceptions are often influenced by factors like
branding, pricing, and the overall presentation of the product. A luxury brand, for instance, may
create the perception of higher quality and value, influencing consumer choices.

Brand Image and Consumer Perception: A brand’s image significantly affects how consumers
perceive its products. Consistent branding and messaging can create a positive image and
influence consumer perceptions. Conversely, a negative incident associated with a brand can
tarnish the perception of all its products.

Cognitive Dissonance: After making a purchase, consumers may experience cognitive

dissonance if their perceptions do not align with their actual experiences. This can lead to post-
purchase evaluations and, in some cases, product returns or brand loyalty shifts.

Consumer Behavior: Ultimately, consumer perception plays a crucial role in shaping consumer
behavior. How consumers perceive a product or brand directly impacts their purchasing
decisions, brand loyalty, and word-of-mouth recommendations.

In summary, consumer perception is a complex and dynamic process influenced by sensory

inputs, selective attention, cultural and personal filters, perceptual organization, interpretation,
perceptual thresholds, and various external factors. Understanding and managing consumer
perception is essential for marketers to create effective advertising, develop strong brands, and
meet the expectations of their target audience.

Consumer as a learner

The concept of a “consumer as a learner” refers to the idea that consumers, in the context of the
marketplace, engage in a process of learning and acquiring knowledge as they make purchasing
decisions. This concept is particularly relevant in marketing and consumer behavior studies.
Let’s break down this idea in detail:

Information Gathering: Consumers are constantly exposed to a vast amount of information

about products and services. This information can come from various sources such as
advertisements, reviews, word-of-mouth, and online research. As learners, consumers must sift
through this information to make informed choices.

Need Recognition: The learning process often begins with the recognition of a need or a
problem. For example, a person might realize they need a new smartphone because their current
one is outdated. This recognition triggers the learning process.

Information Processing: Once a need is recognized, consumers start actively seeking and
processing information. They might read reviews, compare specifications, and consider their
budget. This phase involves cognitive processes like attention, perception, and memory.

Evaluation of Alternatives: Consumers often consider multiple options before making a

decision. They compare the features, benefits, and drawbacks of different products or services.
This involves a learning process where consumers acquire knowledge about available choices.

Decision-Making: After evaluating alternatives, consumers make a decision. The decision-

making process is also a form of learning, as consumers gain experience in selecting products or
services that best meet their needs and preferences.

Post-Purchase Evaluation: Learning doesn’t stop after the purchase. Consumers continue to
learn from their experiences with the product or service. If the product fulfills their expectations,
it reinforces their knowledge and perception of the brand. If there are issues or dissatisfaction,
consumers learn from these experiences as well.

Feedback Loop: The learning process in consumer behavior is iterative. Positive or negative
experiences with a product or service can influence future purchasing decisions. Feedback from
one purchase may lead to more informed decisions in the future.

Brand Loyalty and Habit Formation: Over time, consumers may develop brand loyalty or
habits based on their learning experiences. If a brand consistently meets their needs and
expectations, consumers may continue to choose it without extensive information processing.
Social Learning: Consumers also learn from each other. They exchange information, opinions,
and experiences through word-of-mouth, social media, and online reviews. This social learning
plays a significant role in the consumer’s decision-making process.

Cultural and Societal Influences: The broader cultural and societal context in which consumers
exist also shapes their learning. Cultural values, norms, and trends influence what consumers
perceive as desirable and acceptable.

In summary, the concept of a “consumer as a learner” recognizes that the process of consuming
products and services is not just a transaction but a continuous learning experience. Consumers
acquire knowledge, both individually and collectively, through various stages of information
gathering, evaluation, decision-making, and post-purchase evaluation. This knowledge
influences their future choices and plays a vital role in shaping their preferences and behaviors in
the marketplace.

Influence of personality on buying behaviour

Personality can significantly influence buying behavior. Here are some ways in which it plays a
role:

Brand Preferences: Individuals with different personalities may be drawn to specific brands that
align with their values and self-image. For example, someone with an adventurous personality
might prefer outdoor gear brands.

Impulse Buying: Impulsive individuals may be more likely to make spontaneous purchases
without much consideration, while those who are more cautious might carefully evaluate their
buying decisions.

Status and Luxury Goods: Personality traits like extraversion and a desire for social status can
drive people to buy luxury or status-symbol products to showcase their personality and social
standing.

Risk Aversion: People who are risk-averse may opt for established, trusted brands, while risk-
takers might be more open to trying new, innovative products.

Psychological Factors: Personality can also influence how individuals respond to marketing
messages. For instance, someone with a high need for achievement may respond well to ads
emphasizing success and ambition.

Loyalty: Personality traits can affect brand loyalty. Some individuals may be more loyal to
brands that reflect their core values and personality traits.

Understanding the interplay between personality and buying behavior is essential for marketers
to create targeted advertising and product offerings.
Influence of attitude on buying behaviour
Attitude plays a significant role in influencing buying behavior. Here are some key ways in
which attitude can impact consumer purchasing decisions:

Affecting Product Evaluation: Attitudes, whether positive or negative, can shape how
consumers perceive and evaluate products or services. A person with a positive attitude towards
a brand is more likely to view its products favorably.

Purchase Intent: Attitude influences a consumer’s intention to buy. A favorable attitude often
leads to a higher likelihood of making a purchase, while a negative attitude can deter buying.

Brand Loyalty: A positive attitude towards a brand can foster brand loyalty. Consumers with a
strong, positive attitude are more likely to choose that brand repeatedly over competitors.

Influence of Marketing: Marketers often aim to shape consumer attitudes through advertising
and branding strategies. The way a product is presented can impact consumers’ attitudes towards
it.

Social and Peer Influence: Attitudes are often influenced by social factors and the opinions of
peers. A consumer may adopt the attitudes of their social circle, affecting their buying choices.

Post-Purchase Satisfaction: Attitude doesn’t just influence the initial purchase but also the post-
purchase experience. If a consumer’s attitude towards a product remains positive after purchase,
they are more likely to become repeat customers and brand advocates.

Psychological Factors: A consumer’s attitude is influenced by their beliefs, emotions, and past
experiences. These psychological factors can have a profound impact on their buying behavior.

In summary, a consumer’s attitude, which is shaped by various internal and external factors, can
strongly affect their purchasing decisions. Marketers often focus on understanding and
influencing these attitudes to drive consumer engagement and sales.

Cultural, Social and economic factors affecting consumer behaviour,

Consumer behavior is influenced by a complex interplay of cultural, social, and economic
factors. Let’s delve into each of these categories with examples:

Cultural Factors:
Cultural factors encompass the values, beliefs, customs, and traditions of a society. They have a
significant impact on consumer behavior. Here are some key aspects:
Culture: The culture a person belongs to can strongly influence their preferences and buying
decisions. For instance, in India, where vegetarianism is a cultural norm due to religious beliefs,
there’s a higher demand for vegetarian food products.

Subculture: Subcultures within a society, such as ethnicity, age, or regional groups, can affect
consumer choices. For example, the fashion preferences of teenagers in the United States may
differ significantly from those of senior citizens.

Social Class: A person’s social class can determine the brands they prefer. High-income
individuals might opt for luxury brands, while lower-income consumers may choose budget-
friendly alternatives.

Social Factors:
Social factors are related to interactions with family, friends, reference groups, and society as a
whole. These factors can shape consumer behavior in various ways:

Family: Family members can influence purchase decisions. For instance, a family with young
children is likely to buy different products compared to a single person living alone.

Reference Groups: People often look to their reference groups, such as friends, colleagues, or
online communities, for product recommendations. If a person’s friends are enthusiastic about a
specific smartphone, they may be more inclined to buy the same model.

Social Media: With the rise of social media, the influence of celebrities and influencers on
consumer behavior has grown significantly. A celebrity endorsing a particular brand can lead to
increased sales of that brand’s products.

Economic Factors:
Economic factors refer to a consumer’s financial situation and the overall economic conditions in
which they operate:

Income: A consumer’s income level affects their purchasing power. A person with a higher
income can afford more expensive products and services. For example, someone with a high
income may choose to buy a luxury car, while someone with a lower income may opt for a more
affordable one.

Price and Quality: Economic factors also influence the perception of value. During economic
downturns, consumers might prioritize lower prices over brand loyalty. Conversely, in a
booming economy, they might prefer higher-quality products, even if they’re more expensive.

Inflation: Inflation can impact consumer behavior by eroding the purchasing power of money.
When prices rise, consumers may cut back on spending, opt for cheaper alternatives, or seek
discounts.
In summary, consumer behavior is a dynamic process influenced by a wide range of cultural,
social, and economic factors. Understanding these factors is crucial for businesses to tailor their
marketing strategies and products to meet the needs and preferences of their target audience.

Consumer attitude formation and change.

Consumer attitude formation and change are key concepts in the field of marketing and
psychology. Attitudes are the overall evaluations and feelings people have toward products,
services, brands, or ideas. They play a crucial role in shaping consumer behavior and decision-
making. Attitudes can be formed and changed through various processes. Let’s explore this in
detail with examples.

1. Attitude Formation:
Cognitive Consistency Theory: This theory, proposed by Leon Festinger, suggests that people
want their attitudes to be consistent with their beliefs and actions. For example, if someone
believes in eco-friendly practices and then buys an electric car, their attitude toward electric cars
will likely become more positive, as it aligns with their values.

Classical Conditioning: Attitudes can be formed through associations. For instance, if a

company consistently pairs its brand with positive imagery or emotions in advertisements,
consumers may develop a positive attitude toward that brand. Consider the association of Coca-
Cola with happiness and sharing in its advertising.

Social Learning: People can develop attitudes by observing and imitating the behavior and
attitudes of others. If a celebrity endorses a specific product, their fans might develop a positive
attitude towards it because they respect and admire the celebrity.

2. Attitude Change:

Cognitive Dissonance Theory: When people experience conflicting beliefs or attitudes, they are
motivated to reduce this discomfort. For example, if someone smokes cigarettes despite knowing
the health risks, they may change their attitude towards smoking to reduce cognitive dissonance.

Persuasion: Attitude change can occur through persuasive communication. The elaboration
likelihood model (ELM) suggests that people can be persuaded in two ways: central route (when
they carefully evaluate arguments) and peripheral route (when they are influenced by superficial
cues). For example, a well-constructed, fact-based argument may change someone’s attitude
towards a political issue through the central route, while a celebrity endorsement might work
through the peripheral route.

Social Influence: Attitudes can be influenced by the opinions and behaviors of others. If a
person’s friends start using a particular social media platform, they might change their attitude
and join to fit in with the group.
Example:
Let’s say you have a friend who used to have a negative attitude towards electric cars because of
concerns about battery life and charging infrastructure. However, over time, they observed more
of their friends and family members purchasing electric cars, and they saw improvements in
charging infrastructure. As a result, their attitude towards electric cars shifted from negative to
positive due to social learning and changing circumstances.

In summary, consumer attitude formation and change are complex processes influenced by
cognitive consistency, social learning, conditioning, and persuasive communication.
Understanding these processes is crucial for businesses and marketers to effectively shape and
influence consumer attitudes toward their products or services.